041709.pdf

Higher Ed NewsWeekly

from the Illinois Board of Higher Education April 17, 2009 ON CAMPUS Page 1 New UI business dean set to tackle challenges 4 Chicago State president finalist faces student

criticism 5 South Side university scrambling for more

students as school's enrollment hits near 20-year low

7 Students slam CSU president finalists 8 NU's law students offered help while waiting out

job freeze 9 COD extends Breuder's contract three more

years 10 LLCC steps up help for the unemployed STATE 11 Bill to help college students avoid credit card

debt advances 12 Quinn tackles income tax plan, gay marriage

during Harper visit 14 State's schools to get $3 billion in federal

stimulus funds 15 Arne Duncan: Education secretary warns Illinois

of actions needed to get more stimulus cash 17 Edgar says community colleges important for

economy 19 Senate president: Capitol atmosphere improved 20 Cullerton promises a capital bill 21 Arne to Illinois: Shape up NATIONAL 23 Average college credit card debt rises with fees,

tuition 24 College students' credit card debt hits record

level 25 Murky picture for faculty salaries 32 Plan to change student lending sets up a fight 35 Stimulus spurs campus building 37 Locked-in tuition is a win for families but a

tough sell for colleges 39 Sallie Mae's full court press 41 Shopping for 'cut scores' 44 The student loan industry pushes back

46 Two-thirds of students get financial aid, federal report says

47 Education standards likely to see toughening 50 Higher Ed Watch exclusive: Sallie Maes

alternative student lending plan 53 More students paying college costs with credit

cards 54 State spending on higher education hasn't always

been so volatile, study finds 55 18 years in the making 60 Performance-based college financing systems

often die young, researchers say 61 Colleges cite inequities in new benefits for

veterans 66 Education Dept. gets a nominee who champions

the underserved 69 Professors' pay raises beat inflation; so much for

the good news MONEY AND BUDGET 72 Law freezes tuition, but fees keep rising 75 Local universities reach out to students whose

families are economy's victims 77 Citing dip in funding, Lake Land raises tuition,

fees 79 SIUC eyes 4.5 percent tuition increase 80 JWCC officials say $3 tuition hike will be offset

by new tax credit as part of stimulus package

TECHNOLOGY 81 Why is Web 2.0 important to higher education? COMMENTARY 83 Paranoia.edu anxieties 85 Status quo university 86 How to raise our I.Q. 88 The battle over student lending 89 From survival to sustainability ODDS AND ENDS 92 Fewer openings in nursing field 93 How researchers classify biracial subjects skews

study results, authors say 95 Training without a campus

97 U.S. education reform is great, but Europe is not the model

98 Colleges ask donors to help meet demand for aid 100 Duncan and Chinese Minister sign higher-

education agreement 101 The SAT 'at war with itself' 103 Applying for financial aid? You might need a

college degree to fill out the forms 104 Survival of the wealthiest 105 Why reverse transfer?

OTHER STATES 107 Large salaries at Ohio's public universities take

heat 110 Georgia: Tuition may rise for new students 111 Virginia: College counselors for all 113 Ohio: Learning-skills course appears to help

students succeed 115 North Carolina: Colleges get mysterious millions

1

The News-Gazette, April 12, 2009 (Page 1 of 3)

New UI business dean set to tackle challenges

By Don Dodson Sunday, April 12, 2009 8:12 AM CDT

CHAMPAIGN Illinois farm boy. Economist with degrees from Bradley and Cornell.

Thirty-year University of Illinois faculty member. Long-suffering Cubs fan.

That's Larry DeBrock, newly appointed dean of the UI College of Business.

DeBrock, 56, faces several challenges and opportunities in the years to come, according to Ira Solomon, co-chair of the search committee that recommended finalists for the position.

First, business schools nationwide are working to establish global alliances over the next decade, said Solomon, head of the UI's Accountancy Department. DeBrock will be in a position to determine what kind of footprint the UI has worldwide.

Second, the new business dean has a "window of opportunity" in determining what kind of presence the business college has in Chicago, the state's major economic center. The college already has two initiatives there: the Executive Master of Business Administration program and the master's program in taxation. DeBrock can help determine where future growth occurs.

Third, the college is facing fiscal challenges at the same time it's seeing "tremendous student demand" for its courses.

"Admission to business school is a hot ticket," Solomon said, noting there's also strong demand for business classes from students in other disciplines at the UI.

DeBrock whose appointment is subject to board of trustees approval is well-suited to address such questions, said David Ikenberry, associate dean for executive education and a professor of finance.

"The college, at this point in its life cycle, has a good sense of where it needs to go," Ikenberry said. "Larry has a clear vision of that direction, and he brings great balance with his 30 years of experience as a faculty member, researcher and teacher."

In an interview last week, DeBrock said one of the college's priorities will be finding money to increase the size of the faculty.

Business professors are relatively scarce, he said, because plenty of alternative employment is available for them in the private sector.

Plus, in some fields, more professors are retiring than coming into the work force.

That's the case nationally in accounting, where the number of retirements is projected to be 2 1/2 times the number of new entrants, he said.

Other priorities the faculty will deal with, DeBrock said, are rethinking the structure of the UI's MBA program and considering the curriculum of the Ph.D. program.

2


DeBrock said he expects undergraduate enrollment in the college to remain around 3,000. But the student-to-faculty ratio is too high, and he plans to pay for faculty expansion through "a combination of campus sources and entrepreneurial behavior."

In terms of facility renovation, he said the college's next target is doctoral students' offices in the Surveying Building, just east of Wohlers Hall, on Gregory Drive. That building is in "a state of disrepair and needs attention," he said.

DeBrock grew up on a farm in Bureau County and went to high school in Manlius, where his graduating class numbered 29.

He entered Bradley University in Peoria, thinking he might become an engineer, but switched to math and later to economics after becoming intrigued by it.

After receiving his bachelor's degree, he went to Cornell University, getting master's and doctoral degrees there. In 1979, he joined the UI faculty as an assistant professor in the Economics Department. He was later promoted to associate and full professor.

Five years ago, the campus moved the Economics Department from the College of Business to the College of Liberal Arts and Sciences.

But DeBrock stayed behind in the College of Business. In 2000, he had been named associate dean for professional programs by then-Dean Avijit Ghosh.

When the Economics Department moved away, DeBrock remained associate dean and was made a professor of business administration.

When Ghosh was named the UI's vice president of technology and economic development in 2008, DeBrock was named interim dean.

Solomon said DeBrock blends a "very easygoing" style with "tremendous substance."

"He mastered the art of disagreeing with people without being disagreeable," Solomon said. "That's tremendously important in a faculty setting."

Ikenberry ranked DeBrock "among the most passionate and compassionate leaders I've ever met. ... He has genuine affection and concern for the people who make up a great university and the College of Business."

DeBrock worked hard to make sure the college's new Business Instructional Facility was open on time, said Lois Meerdink, assistant dean of business career services.

"Last fall he put heart and soul into getting this building open for classes," she said. "We were seeing him all hours of the day making sure all things were operational and open for business."

The weekend before the building was scheduled to open, ceiling tiles weren't in place and power lines were hanging down. Chairs covered the floor of the atrium. But with hard work by UI Facilities & Services, things were in place by Monday barely.

"It was still a hard-hat zone at 7 a.m.," DeBrock said.

3


The modern, four-story building, at the southwest corner of Sixth Street and Gregory Drive in Champaign, was designed with students in mind. Most coursework at the undergraduate and graduate levels involves teamwork, and students can reserve rooms there for their teams, DeBrock said.

"We want them to treat this as their space," he said.

After classes end this spring, work will begin on a Caribou Coffee shop in the Business Instructional Facility. It will sell hot soup and sandwiches in addition to coffee.

Ikenberry said DeBrock is "fiercely loyal to the great institutions in his life," whether it's the Chicago Cubs or the UI College of Business.

"I can't think of a constituent on the losing end of this appointment," he said.

UI College of Business at a glance

Departments: Accountancy, Business Administration, Finance

Undergraduate students: 2,974

Master's students: 947

Doctoral students: 90

Faculty members: 91

Living alumni: 54,938

4

Chicago Tribune, April 13, 2009

Chicago State president finalist faces student criticism

April 13, 2009 Posted by Jodi S. Cohen at 4:25 p.m

The first of two finalists for Chicago State Universitys top job faced students, faculty and other community members today as students wore shirts that proclaimed her a lousy candidate.

We spent $75,000 on a president search & all we got were two lousy candidates, read the green shirts, worn by dozens of Chicago State students during the visit from Carol Adams, secretary of the Illinois Department of Human Services.

Wayne Watson, the retiring chancellor of the City Colleges of Chicago, will visit the South Side campus Tuesday for a similar day of Q&A meetings with campus groups, including deans, faculty, students, civil service employees, and members of the presidential search advisory committee.

Critics have called Adams and Watson local political insiders and have questioned why a national search didnt yield a broader selection of finalists. Chicago State paid The Hollins Group, an executive recruiting firm in Chicago, $75,000 to help with the search.

Advisory committee members and others also have criticized the trustees for not having a more open search process. Committee members said there were about 35 applicants for the job, and that the trustees and a search firm narrowed them to 12.

5

The Chicago Sun-Times, April 13, 2009 (Page 1 of 2)

South Side university scrambling for more students as school's enrollment hits near 20-year low

BY DAVE NEWBART Staff Reporter/[email protected]

When Elnora Daniel left her post as president of Chicago State University last summer amid critical financial audits, enrollment at the South Side school was at a near-20-year low.

Now, at a time more students than ever want to go to college but costs have skyrocketed, the school's new leader is touting its affordable tuition -- under $8,000 a year -- in an effort to boost enrollment to perhaps 12,000, nearly twice the number of students now at Chicago State.

Interim president Frank Pogue says he wants to reach out to students who might not have considered the school in the past. Chicago State is recruiting overseas and out-of-state, for example, as well as from suburbs whose students haven't sent many applications to the school.

It's doing more recruiting at high schools throughout the area and bringing high school counselors to campus to show them what the school has to offer. The school also wants to launch a major marketing campaign.

One area that Chicago State -- whose student body is 80 percent African-American -- is targeting is the largely white southwest suburbs. That effort began under Daniel at the urging of state Sen. Ed Maloney (D-Chicago), a CSU graduate and former Oak Lawn High School faculty member.

With 6,800 students in classes this past fall, enrollment is down 33 percent since its peak in 1994 and down 20 percent since Daniel took office in 1998. Even as enrollment dropped at CSU, enrollment in Illinois' public universities overall has grown by nearly 5 percent in the last decade.

"We hope to increase our overall enrollment, but first we need to get it stabilized," said Howard Johnson, interim vice-president for enrollment management and student affairs.

Johnson told the Chicago State board last week it should take a year or two to do that, then is looking ahead to growth of 5 percent to 8 percent a year.

The school has already seen a slight uptick in applications for next fall. One of those new applicants is Geannie Papas, 27, of the Northwest Side. She took a tour of the campus in February and "fell in love right away.'' She said administrators were "friendly, smiling and helpful.'' She was accepted and plans to start this summer in the school's nursing program.

But some current students fear what the impact of the school's drive for more students could be. Michael O'Connor, a political science major who lives downtown, said it already can be difficult to get into upper-level courses needed to graduate.

"Don't do it at our expense,'' he said of the school's enrollment push.

Pogue said the school is trying to raise its academic profile and attract more students who can pay full tuition.

"We have to have a relationship with high school teachers and with principals'' to convince them to send

6

The Chicago Sun-Times, April 13, 2009 (Page 2 of 2)

more students to Chicago State, said Pogue, who will step down at the end of this year.

On Monday and Tuesday, the school will host two finalists to replace him: Wayne Watson, the retiring chancellor of City Colleges of Chicago, and Carol Adams, secretary of the Illinois Human Services Department.

The school is aiming to increase the number of students accepted who actually enroll, to 50 percent from the current 30 percent, the so-called "yield" rate.

Chicago State also is aiming to increase the number of first-year students who return for another year and increase the six-year graduation rate, from 13 percent now to 45 percent.

7

The Chicago Sun-Times, April 13, 2009

Students slam CSU president finalists

CHICAGO STATE | 2 choices called 'political hacks'

BY LEWIS LAZARE Staff Reporter/[email protected]

Chicago State University students and alumni today plan to protest the school's finalists for president.

Michael O'Connor, a spokesman for the upset students, maintains the university spent $75,000 on the search for a new president and "came up with two political hacks": Wayne Watson and Carol Adams.

Watson, who will step down as chancellor of City Colleges of Chicago in June, and Adams, the current secretary for the State of Illinois Department of Human Services, are scheduled to meet with students during their visits today and Tuesday.

As recently as last week, CSU officials encouraged the press and the public to come meet the candidates. But after a contentious board meeting and students voicing their intention to protest, they abruptly, on Sunday morning, declared those meetings "closed to all news media." But later Sunday, CSU officials reversed their decision and said the meetings were open.

O'Connor said the protesting students are unhappy with Watson's alleged union-busting tactics while at City Colleges, and Adams' "baggage," including her handling of the so-called "silk pajamas" scandal that involved a state Human Services Department chief of staff and a sexual-harassment filing several years ago.

CSU spokeswoman Patricia Arnold said the university encourages students "to think for themselves and supports their right to have their say."

8

The Chicago Tribune, April 14, 2009

NU's law students offered help while waiting out job freeze

By Ameet Sachdev | Tribune staff reporter

Northwestern University Law School is trying to ease the pain of graduating students who face short-term unemployment because their jobs have been deferred. In an e-mail to students late Monday, David Van Zandt, the law school dean, encouraged students to continue networking and pursue activities that build their legal skills while they are unemployed. Northwestern has added volunteer opportunities at its Bluhm Legal Clinic and has identified other public-interest employers who are interested in hiring interns. "What we're trying to do is encourage people to keep busy and develop their careers," Van Zandt said in an interview. "You can't just sit at home." Law students have become victims of a recession that has slammed the legal industry. Big law firms, which are the destination for many students at Northwestern and other top law schools, are struggling to deal with steep declines in work related to financial and real estate matters. About 80 percent of Northwestern's graduates start at medium and large law firms, Van Zandt said. Dozens of firms have laid off lawyers and a few have gone out of business. They are also cutting costs by telling new hires not to show up for work this fall. Start dates have been delayed from three months to a year. In Chicago, for example, Mayer Brown has postponed its start date to Jan. 19; Katten Muchin Rosenman to Feb. 1. Some firms are offering stipends to help make up for the loss of income, but the compensation is much less than the $160,000 first-year associates earn at big law firms. Third-year students who will graduate in May are worried about their ability to repay their education loans. Northwestern charges $45,000 for tuition, leaving some students with loans of more than $100,000 when they finish school. Van Zandt reminded students that they can postpone their monthly payments on loans provided by the school until they start working and apply for short -term medical insurance to bridge the gap between graduation and their start dates. The loan forbearance is also available to Northwestern alumni who have been laid off. [email protected]

9

Daily Herald, April 17, 2009

COD extends Breuder's contract three more years

By Jake Griffin | Daily Herald Staff

After less than six months at the helm of the College of DuPage - and despite a three-and-a-half year contract already in place - COD President Robert Breuder received a three-year contract extension Thursday.

The board voted 6-0 in favor of the extension, with trustee Kathy Wessel absent. Wessel urged her colleagues - including four members who won't be on the board in a month - to postpone the vote until the new members take office.

Many who spoke at the meeting Thursday urged Breuder to reject the extension, but Breuder said he will accept the additional three years.

"It was always the board's desire to have a longer arrangement," Breuder said. "If you look nationwide, many college presidents' contracts are for six years or longer."

Incoming trustee Kim Savage works in the higher education field. She agreed that a six-year contract for a college president is not uncommon, but the circumstances surrounding Breuder's extension are also uncommon.

"If he is truly doing a good job, he deserves it, but it's only been three months and you can't make an evaluation after just three months," she said. "The current board did not approve this in the best interest of the community."

Breuder's current annual salary is $334,000. His contract calls for a 3 percent increase each year. That means by the time his contract expires in June 2015, he'll be making close to $390,000.

Many in the audience at Thursday's meeting complained that the decision to extend Breuder's contract came before they were allowed to speak and the details were kept secret until after the board voted.

"A board that is confident that it is doing the right thing for the community would freely share information and welcome public scrutiny and input," said Lisa Higgins, vice president of COD's faculty association. "When top college officials refuse to give information about agenda items on the morning that they are to be voted on, it goes against the spirit of open meetings laws and effectively cuts the public out of the process."

Outgoing board Chairman Mike McKinnon said Breuder's first few months on the job have shown he is the right person to lead the college for the next six years.

"In his first three months he has lived up to his stellar reputation as a take-charge leader with vision," he said.

Breuder arrived at COD in November from Harper College in Palatine after former President Sunil Chand was ousted by the board. A severance agreement forbids either side from discussing why Chand was let go. Chand is still be paid for the remaining years of his contract, though some of it is being covered by his current employer, Benedictine University.

COD is also paying former President Harold McAninch a salary for serving as interim president while the board searched for Chand's replacement.

Contract: Some say COD vote too hasty

10

The State Journal-Register, April 17, 2009

LLCC steps up help for the unemployed

Illinois 9.1% rate a 24-year high

By TIM LANDIS THE STATE JOURNAL-REGISTER

Posted Apr 17, 2009 @ 12:11 AM

Rising unemployment in central Illinois has prompted Lincoln Land Community College to organize a rapid response team to help people who have been laid off or are facing loss of their jobs. The announcement was made Thursday, the day the state announced 596,000 Illinoisans are out of work and unemployment was at a 24-year high of 9.1 percent in March. Meanwhile, the federal government reported Thursday that people receiving unemployment benefits had topped 6 million for the first time. State employment officials also announced that unemployment recipients who have exhausted 59 weeks of benefits through state and federal assistance can now get an additional 13 weeks through a federal economic-stimulus bill. Certainly, the volume (of unemployed workers) has increased. The variety of workers also has increased. Theres no specific type of worker, said Mac Warren, who will direct the nine-member team. Warren also is assistant director in recruitment and rapid response for LLCC. While the college has traditionally responded to layoffs and plant shutdowns, Warren said a specific team and a director was considered the best way to speed assistance as layoffs continue to mount. The first call was to aid workers laid off at the Affinia Group brake-manufacturing plant in Litchfield, where a resume-writing workshop was held this week. Nine out of 10 of them had never made a resume. They went directly from high school into the work force. For 30-, 40- and 50-year-old individuals, this sometimes is the first resume theyve had to write. Theres a lot of fear out there, Warren said. College spokeswoman Lynn Whalen said the rapid-response team will supplement assistance through state agencies such as the Illinois Department of Employment Security, and the Illinois Department of Commerce and Economic Opportunity. With the economy the way it is, we felt there was a call for this in addition to what we were already doing, Whalen said. Additional information is available at 786-2227 or [email protected].

11

Springfield State Journal-Register, April 12, 2009

Bill to help college students avoid credit card debt advances

By ADRIANA COLINDRES THE STATE JOURNAL-REGISTER

State Treasurer Alexi Giannoulias initiative to protect college students from credit card debt has won a warm reception so far in the General Assembly. Senate Bill 1524 sailed through the Illinois Senate on April 2 without any opposing votes, and it heads next to the House of Representatives. To become law, it still needs to pass in the House and be signed by Gov. Pat Quinn. The response has been really tremendous. Its a common-sense, pragmatic piece of legislation, Giannoulias said last week. One of the measures provisions would prevent credit card companies from offering gifts, such as T-shirts or food, for signing up. Thats how they initially get a lot of these students to sign a contract, Giannoulias said. Other parts of the bill would: Prohibit colleges from selling their databases of student names and contact information to credit card issuers.

Make schools contracts with credit card issuers available to the public. Compel institutions to offer courses in financial literacy if credit cards are marketed to

undergraduates.

Giannoulias said the intent is to help college students avoid being overwhelmed by credit card debt. Some young people, for instance, might not realize the perils of making just the minimum payments, which can cause their debt to skyrocket, he said. If we can teach young men and women who are in college early on about the dangers of credit card debt ... we should be helping them out, he said. While the American Bankers Association has spoken out against similar proposals in the past year or so, a spokesman said he isnt sure if the organization has a position on the Illinois legislation. The Illinois Bankers Association is taking a neutral stand on the Giannoulias-backed bill, spokeswoman Debbie Jemison said. Last summer, in testimony before a congressional subcommittee, a top official with the American Bankers Association Card Policy Council argued against policies that would end up hurting the vast majority of young adults who have shown they are capable of managing their finances responsibly. Restricting access to this form of credit would result in great financial hardship for most card-holding college students and their families, said Kenneth Clayton, senior vice president and general counsel of the ABA Card Policy Council.

Adriana Colindres can be reached at 782-6292

12

Daily Herald, April 14, 2009 (Page 1 of 2)

Quinn tackles income tax plan, gay marriage during Harper visit

By Ashok Selvam | Daily Herald Staff Published: 4/14/2009 12:01 AM

Gov. Pat Quinn said he thinks Springfield lawmakers will eventually allow for civil unions, which would give homosexual couples rights comparable to those of married couples.

"I think that's probably where the legislature is headed in the state," he said.

Gay marriage was one of the questions Quinn addressed Monday at Harper College in Palatine. Quinn also said he supported the federal DREAM Act, which would allow some undocumented immigrants who came to America as children and are pursuing an education to earn conditional permanent residency.

He discussed the pension system for public school teachers, saying it needs to better mirror private systems.

"We cannot afford to have a public pension system that, essentially, goes bust and no one will have a pension," Quinn said.

While he called community colleges the state's "heart and soul," he still would not endorse Harper's proposal to offer four-year bachelor's degrees. Quinn said his reservations stem from possible amendments to the bill, and that he also wanted to see how traditional four-year schools would react to the potential competition.

"I want to make sure that we do this in a way that provides a good model for the entire state," he said.

The Illinois House approved the measure last month, which now awaits the Senate's vote and, possibly, Quinn's signature. If approved, Harper could start its pilot program next year. Quinn, who taught at two community colleges - Triton and Prairie State - is known as a supporter of the community college system.

After his remarks to more than 200 audience members, Quinn headed to Hoffman Estates for a fundraiser held by Taxpayers for Quinn.

The fundraiser ended a busy day of travel for Quinn, who earlier stopped by Wrigley Field for a couple rainy innings at the Cubs' home opener. During his suburban appearances, he dubbed himself "the accidental governor," a reference to his ascendancy from lieutenant governor in the aftermath of Gov. Blagojevich's impeachment.

Quinn also stumped for his ethics-reform bills, which he hopes will prevent political corruption, of which his predecessor has been accused.

Quinn's birthday, Dec. 16, 1948, is the same day as the 175th anniversary of the infamous Boston Tea Party protest. Thirty years later, in 1978, Quinn urged voters to send tea bags to then-Gov. James Thompson to protest salary raises for Springfield lawmakers.

Now that another 30 years have passed, residents across the state are organizing tea parties of their own Wednesday to protest Quinn's proposed tax increases. Quinn didn't find the gesture ironic, simply calling

13

Daily Herald, April 14, 2009 (Page 2 of 2)

it "an American way to express your opinion."

He added that he didn't create the state's $11 billion budget deficit and sees the tax increases as a way to address the deficit, allow Illinois to pay its bills and avoid becoming a "deadbeat state."

Residents in the Northwest suburbs made their own protest statement last week with the lopsided results from two advisory referendums questioning Cook County government.

The first questioned last year's county sales-tax increase, which voters overwhelmingly asked to repeal. The second asked if voters would want to secede from Cook County and form their own county government.

"I think that people should express themselves," Quinn said. "I believe in referendums. I think it was real healthy to have that."

Q&A: Quinn calls himself 'the accidental governor'

14

Chicago Sun-Times, April 14, 2009

State's schools to get $3 billion in federal stimulus funds

April 14, 2009 FROM STNG WIRE REPORTS

Illinois is expected to receive $3 billion in education funding through the American Recovery and Reinvestment Act of 2009 and could be receiving some of those dollars within two weeks.

The federal stimulus funding for Illinois schools was announced Tuesday by Gov. Pat Quinn and U.S. Secretary of Education Arne Duncan at the Andrew Jackson Language Academy on the Near West Side.

The $3 billion includes $2 billion from the State Fiscal Stabilization Fund, part of which Gov. Quinn is proposing to use during this current fiscal year to pay the remaining General State Aid payments to districts, a release from Quinn's office said. Also, Quinns Fiscal Year 2010 Budget proposes to use additional State Stabilization discretionary dollars to increase education funding by $174 million.

The final $1 billion of the $3 billion in ARRA funding will use a federal formula to support operations and programs at schools such as the Jackson Academy, the release said.

"These funds allow Illinois to pay its bills to schools quickly, which keeps our teachers teaching and protects our children," Quinn said.

The $100 billion the federal government has decided to invest in education presents us with a historic opportunity to avoid catastrophic cuts in teaching positions and learning programs Duncan said. We also have a chance to move beyond the status quo and invest in innovative programs that work."

In order to access the funding, Quinn has assured the U.S. Department of Education that Illinois will move towards education reform in several areas, including progressing toward rigorous standards and high-quality tests, establishing a data system to track student progress from preschool through college and careers, increasing teacher effectiveness and focusing more intense support on failing schools.

15

Chicago Tribune, April 15, 2009 (Page 1 of 2)

Arne Duncan: Education secretary warns Illinois of actions needed to get more stimulus cash

Extra U.S. funds for education said to be at risk

By John McCormick and Monique Garcia | Tribune reporters

During a visit home Tuesday, Education Secretary Arne Duncan warned his home state of Illinois is at risk of losing its shot at a new pot of federal money if it fails to show the political will to fundamentally shake up the way schools are funded and operated. "I would love to see Illinois compete, but Illinois has to change its behavior," Duncan told the Tribune editorial board. The former Chicago Public Schools chief said the state has a real chance to compete for a share of $5 billion the Obama administration plans to make available for states that want to try new approaches to improving education. But Duncan also acknowledged skepticism about the odds Illinois will change its stripes, given his years of frustration in unsuccessfully lobbying for reform in Springfield. "Business as usual, to be clear, would basically eliminate Illinois from competition," Duncan said. "But we're not looking just at past track record. We're looking at folks who are really willing to challenge the status quo." Duncan said funding inequity, a limit on the number of charter schools, marginal efforts to police teacher quality and other old-school ways put the state at risk of disqualification from future innovation funding. He pointed to the removal of Rod Blagojevich as governor as a positive step forward. "That piece of it is behind us, and Illinois has a chance to either stay at a very mediocre level or fundamentally break through and start to reward excellence and create innovation and incent innovation," he said. Asked about Gov. Pat Quinn's plans to use a large portion of the federal stimulus money meant for education to plug holes in the state budget, Duncan declined to discuss specifics. "If folks are playing shell games, if folks are operating in bad faith, it puts their second chance at billions of dollars in jeopardy," he said. "We have significant carrots and sticks." Quinn has proposed using $1 billion in stimulus money the state is expected to soon receive to pay down a backlog of bills to local school districts. An additional $2 billion will go to supporting education this year and next, but Quinn's proposed increase for education next year would only be about $174 million. "The purpose of this was to ensure states didn't have to reduce education spending in this economic downturn, and that's exactly what the state of Illinois is using the money for," Quinn spokeswoman Katie Ridgway said. Matt Vanover, a spokesman for the Illinois State Board of Education, said the state is in a position to capture additional stimulus dollars because it is putting together a data tracking system to monitor student progress and reviewing ways to improve teacher effectiveness and achievement standards. Duncan, 44, also repeatedly referenced his successes and failures while guiding Chicago schools, the

16

Chicago Tribune, April 15, 2009 (Page 2 of 2)

nation's third-largest system. His efforts to restructure struggling schools, experiment with incentive pay for teachers in high-poverty schools and reward students with money for grades earned him critics and champions. As he called for higher pay for those teaching math, science and foreign languages, Duncan said states need to be more aggressive in closing the worst schools. "You basically eliminate that bottom part of your portfolio," he said. A longtime Obama basketball buddy and fellow Harvard alumnus, Duncan said plans are in the works for the president, First Lady Michelle Obama, Vice President Joe Biden and Jill Biden, a teacher, to go to college campuses this fall to promote teaching careers as a way to do public service. Duncan made clear he hopes to return to Chicago after his time in Washington. "This is home," he said. "I hope to be there eight years."

17


Edgar says community colleges important for economy

By Noelle McGee Wednesday April 15, 2009

DANVILLE As they have done previously, community colleges again will play a major role in helping people get through these tough economic times, a former Illinois governor told community college officials on Tuesday.

"The recession will end, but things won't be the same," said former Gov. Jim Edgar, now a Distinguished Fellow at the University of Illinois' Institute of Government and Public Affairs. "We have to be prepared and have our workers prepared for the new economy. This is a great opportunity for you in higher education."

The two-term governor, who also was Secretary of State for 10 years and a state representative for another 10, spoke at the Illinois Community College Trustees Association East Central Region meeting at Danville Area Community College.

DACC Trustee Dave Harby is the chairman of the East Central Region, which also includes Parkland, Lake Land, Heartland, Lincoln Land and Richland community colleges.

Edgar said Illinois has been through one its most traumatic times with former Gov. Rod Blagojevich's arrest for political corruption, impeachment and removal from office, which made the state "the laughingstock of the nation." But looking back, he said, it was the best thing that could have happened.

"We couldn't go on being as dysfunctional as we had been," he said, adding the state now has a new governor and leaders that talk to each other. "They may not agree on everything, but at least we're making some progress."

Edgar said Gov. Pat Quinn's biggest challenge will be passing a state budget, which now has an estimated $11 billion to $12 billion deficit. He supports Quinn's proposed tax increase, which "has been needed for a few years."

He also believes Quinn must make deeper cuts. "We can't continue to spend beyond our means," said Edgar, who inherited a $1 billion debt when he became governor in 1991. He was able to restore fiscal stability by downsizing and restructuring state government. When he left the office in 1999, the state had a $1.5 billion surplus.

But spending started to get out of control under former Gov. George Ryan and continued under Blagojevich, he said.

"You cannot keep borrowing yourself out of debt," he said. "It's going to take a tax increase and cutting the budget."

Edgar cautioned community college leaders to not expect a state funding increase. He added they always have been good at knowing how to stretch their money.

Quinn's administration also must address economic development, Edgar said. That's where higher

18


education, particularly from community colleges, plays a role.

"We need to train our workers," he said, adding the two-year institutions can do that and at an affordable cost. "Planning, coordination and partnerships will be important."

Edgar also said everyone in the state must root out and clean up corruption. While the last two governors were tarnished by corruption, he said he believes "that's an exception, not the rule. Most people are honest people who want to do a good job."

He said leaders must be smart enough to surround themselves with people who will help keep them in check, and political party members and voters must do a better job of paying attention to what their leaders are doing and holding them accountable for their actions.

And, educational institutions at every level can play a part by teaching ethics.

"We've got to do a better job teaching our young people the difference between right and wrong," he said, adding questionable activity happens in the private sector, athletics and other areas as well as government. "If we do that, we won't see governors of Illinois going to jail."

Edgar ended by saying we have an opportunity for change, but it's going to take everyone to make it happen. "I have a lot of faith in the people of Illinois. No matter if it's southern Illinois or inner-city Chicago, most folks care. We've got a lot of talent in the state. We've got to pull that talent together ... and rebuild. We can't continue to think it's somebody else's job. It's all of our job."

19

The Southern Illinoisan, April 15, 2009

Senate president: Capitol atmosphere improved

BY SCOTT FITZGERALD, THE SOUTHERN Wednesday, April 15, 2009 11:07 PM CDT

CARBONDALE -Illinois Senate President John Cullerton visited Southern Illinois University Carbondale on Tuesday as a guest of the Paul Simon Public Policy Institute's John White Lecture Series. The Chicago Democrat was instrumental in securing funds necessary to open a $22 million cancer treatment center at the SIU Medical School in July. He also added a provision to the state's indoor smoking ban that allowed one of the foremost researchers in smoking cessation research, David Gilbert of SIUC, to continue work here. "The same day I was elected (senate president), we began to start an impeachment trial of an Illinois governor. It's a very serious thing to remove an elected official from office," Cullerton told a large audience gathered in an SIUC Student Center ballroom. He also conducted a news conference and fielded questions about work being done on the current state budget, including higher education funding and state employee pensions. "We need more money for operations. We need more money for scholarships," he said in response to a question about higher education accessibility. Cullerton, elected to the senate presidency in January, also talked about the backlash of the Blagojevich administration, which he said caused a "total embarrassment" on a national level. And important legislation, such as a major capital improvements bill, gridlocked during the Blagojevich administration, Cullerton said. Cullerton cited "a toxic atmosphere" in the Statehouse as the former governor and lawmakers butted heads for much of Blagojevich's six-year tenure. State lawmakers are working to avoid future scandal by the recent establishing of an ethics reform panel, Cullerton said. Blagojevich and several of his associates have been indicted on federal corruption charges; the governor this week pleaded not guilty and vowed to clear his name. SIUC Chancellor Sam Goldman said he sees an encouraging change in state government. "This is the first time in years the state government is engaged. There's a good feeling. (Cullerton) has a quiet confidence," Goldman said. Concerning a question directed at Cullerton earlier about an increase in state higher education funding proposed by Gov. Pat Quinn, Goldman said he expected support from Cullerton when budget negotiations come down to crunch time. "(Cullerton) didn't say yes. He didn't say no. But it sounds like he will be supportive," Goldman said.

20

The Southern Illinoisan, April 16, 2009

Cullerton promises a capital bill

By Adam Testa, The Southern Thursday, April 16, 2009 8:11 AM CDT

CARBONDALE - State Senate President John Cullerton on Wednesday guaranteed the implementation of a state capital construction bill. Cullerton, D-Chicago, said the Legislature and governor will need to agree on funding mechanisms for the $25 billion plan, which includes about $13 million in bonds and the rest in federal matching dollars. "We will not have a budget without a capital bill," Cullerton said. "And we're going to have a budget, so we're going to have a capital bill." Funding for a capital bill, however, is an area that still needs to be figured out, he said. The state has previously discussed privatizing the lottery as a means of funding the bill. Cullerton said he isn't opposed to the option, but would rather see that money used for the state's general fund than a capital bill. Using an income tax hike to fund the bill could create issues with Chicago-area residents who would contribute the most but see the least amount of the work funded by the bill, he said, suggesting a rise in gasoline taxes would keep the contributions more proportional. An 8-cent increase in gas taxes - currently 19 cents - would generate about $500 million per year, he said. "It's something I think should be on the table," Cullerton said.

21

The Chicago Tribune, EDTORIAL, April 17, 2009 (Page 1 of 2)

Arne to Illinois: Shape up

In 71/2 years as CEO of the Chicago Public Schools, Arne Duncan learned plenty about the dysfunction that defines the education system in Illinois. He was, by and large, polite about thatperhaps because he needed the Illinois legislature to keep sending money to the city schools. Duncan is now the secretary of education in the Obama administration. And he's talking very bluntly about the failings of education here. He came home this week and said Illinois public schools don't cut it. Duncan has $5 billion to hand out to states that promote innovative ideas in education. If Illinois doesn't change, it won't see a dime of that money. "We're going to work with a set of states who are literally going to lead the country where we need to go. We're going to work with a set of states who commit to behaving dramatically differently," he told the editorial board. "Illinois has a chance to compete for hundreds of millions of dollars. I would love to see Illinois compete," Duncan said. "But Illinois has to change its behavior. Business as usual, to be clear, would basically eliminate Illinois from the competition." Wait, there's more. "In too many places, including Illinois, we are lying to children now. [When] we tell a child they are meeting the state standards, the logical implication is that child's on track to be successful. In too many places, including Illinois, if you are meeting state standards you are barely qualified to graduate from high school and you are totally unqualified to go to a university and graduate," he said. Hold on, not done yet. "Illinois has a chance to either stay at a very mediocre level, or fundamentally break through and start to reward excellence and start to create innovation and incent innovation," Duncan said. "And I would strongly urge the state, and I would urge you to help encourage the state, to think very, very differently about what they do. And if Illinois commits to that there's a chance of putting in tremendous, tremendous resources the likes of which this state has never seen. "But if things don't change in a very meaningful way, Illinois won't be among those eight or 10 or 15 states" that receive a share of the $5 billion. So what does Duncan want? He wants Illinois to lift its cap on charter schools. State law says there can be no more than 60 charter schools in the state, but there is demand for more than that. Why the cap? Because charter school teachers usually don't have unions, and the teachers unions see that as a threat. "Great charters make a huge difference in kids' lives. What I loved about charters is they're a school of choice," Duncan said. "If kids stop showing up, we'll take the school out. The money follows the kid." Duncan is absolutely rightthe cap on charters just cheats children, and it has to be lifted. Duncan wants Illinois and other states to chart the performance of children, and connect that performance

22

The Chicago Tribune, EDTORIAL, April 17, 2009 (Page 2 of 2)

to their teachers, and connect those teachers to the education schools that produced them. He's saying: Let's find out who's turning out good teachers and which teachers are turning out educated kids. So is Illinois moving on reform? Not that you could tell from Springfield. All the talk is about how much money Gov. Pat Quinn would provide to schools. Precious little talk about shaking the status quo. One bill that has passed the Senate would set up a system to track students and tie their performance to their teachers. But the bill declares that the information couldn't be used "for decisions involving teacher pay or teacher benefits" unless the union agreed. Pay teachers based on their performance? We'll have none of that here! Two years ago, this page set out a reform agenda for Illinois education and said any substantial increase in school funding has to be tied to progress on those reforms. Arne Duncan came back to Illinois and, in large part, issued the same challenge. So everyone who has a hand in education herefrom the teachers unions to the school boards to the governorhas been put on notice by the education secretary. Change fast, or blow the chance to take part in a $5 billion effort to improve your schools. "That would be a damn shame for the kids of this state, but it is what it is," Duncan said. "In terms of rewarding excellence, I'm not going to mess around with that. We want to work with folks that fundamentally want to change the status quo." Your move, Illinois.

23

USA TODAY, April 13, 2009

Average college credit card debt rises with fees, tuition

By Kathy Chu, USA TODAY

As college costs soar, students are charging more educational expenses to plastic, helping boost credit card debt to record levels.

A new study to be released Monday by Sallie Mae, a college-financing company, finds that the average undergraduate carried $3,173 in credit card debt last year, the highest level since Sallie Mae began collecting this data in 1998. In 2004, the last time the study was done, students carried an average of $2,169 in card debt.

The higher the grade level, the greater the card debt, according to Sallie Mae. In 2008, college seniors with at least one credit card graduated with an average of $4,138 in card debt, up 44% from 2004. By comparison, freshmen's average credit card debt jumped 27% to $2,038.

The study which had a margin of error of plus or minus 4 percentage points relied on March 2008 credit bureau data, the latest available to Sallie Mae. Because the economy has deteriorated since then, "It's likely that 2009 (card debt) could look a little bit worse," says Marie O'Malley, Sallie Mae's director of consumer research.

The findings come as college costs are surging. In the past 10 years, tuition and fees at public four-year colleges have climbed 50%, to an average of $6,585 a year, according to the College Board.

Lenders are also pulling back on private loans, making it harder for some students to pay for college. Student loans backed by the federal government, however, are still readily available.

Credit cards are the "lender of last resort," says Kalman Chany, president of Campus Consultants, a college funding adviser. "If (students) can't get private loans, they turn to credit cards."

Sallie Mae's research suggests that more students are paying for educational expenses such as books and school supplies with credit cards. And they're doing so more often: In 2008, students charged an average of $2,200 in educational expenses to cards, up 134% from four years earlier.

These findings are unscientific because they're based on a poll separate from Sallie Mae's analysis of credit bureau data of 292 private-loan applicants. Nevertheless, the results mirror those of other industry surveys.

"The message is clear," says Edmund Mierzwinski, consumer program director for the U.S. Public Interest Research Group. "Students are carrying more debt on credit cards, and more students are paying for education on credit cards."

24

The Chicago Sun-Times, April 13, 2009

College students' credit card debt hits record level BY KATHY CHU

As college costs soar, students are charging more educational expenses to plastic, helping boost credit card debt to record levels.

A new study to be released today by Sallie Mae, a college-financing company, finds that the average undergraduate carried $3,173 in credit card debt last year, the highest level since Sallie Mae began collecting this data in 1998. In 2004, the last time the study was done, students carried $2,169 in card debt.

The higher the grade level, the greater the card debt, according to Sallie Mae. In 2008, college seniors with at least one credit card graduated with an average of $4,100 in card debt, up 41 percent from 2004. By comparison, freshmen's average credit card debt jumped 27 percent to $2,038.

The study -- which had a margin of error of plus or minus 4 percentage points -- relied on March 2008 credit bureau data, the latest available to Sallie Mae. Because the economy has deteriorated since then, "It's likely that 2009 [card debt] could look a little bit worse," says Marie O'Malley, Sallie Mae's director of consumer research.

Lenders are also pulling back on private loans, making it harder for some students to pay for college. Student loans backed by the federal government, however, are still readily available.

Credit cards are the "lender of last resort," says Kalman Chany, president of Campus Consultants, a college funding adviser.

Gannett News Service

25

Inside Higher Ed, April 13, 2009 (Page 1 of 7)

Murky Picture for Faculty Salaries

On paper, the annual report on faculty salaries being released today by the American Association of University Professors suggests a good year for professors' pay. The average increase across all categories was found to be 3.4 percent for 2008-9. While that's down from last year's average of 3.8 percent, last year's total was outpaced by inflation, while this year's gains came amid virtually no inflation (at least according to official statistics).

If you are a faculty member reading this and not feeling particularly flush, however, there's good reason, as the AAUP report is quick to point out. The data were collected prior to the announcements of many colleges of how they were dealing with the economic turmoil over over the last six months. So the many faculty members who were furloughed this year or the smaller number who experienced salary cuts had original salaries reported for the study. And while furloughs do not technically change salary level, they are de facto pay cuts (especially if, as is frequently the case, professors don't feel they can actually take the time off), and many furloughs are long enough and raises this year were small enough that they will have effectively canceled each other out.

Further, with many colleges announcing pay freezes for 2009-10, and many a faculty member's retirement account suddenly much smaller than it was a year ago, there are all kinds of reasons that any raise received for 2008-9 isn't feeling like it would have in past years (or leading to a standard of living increase). The figures also apply only to full-time faculty members, so the huge part-time teaching force in higher education (which is generally on the low end of the salary scale and this year is experiencing many layoffs) is not reflected.

The AAUP's report on salaries warns that colleges face serious dangers if colleges try to maneuver out of current economic difficulties -- however real -- by sacrificing professors' salaries and using poorly paid part timers to teach a larger share of courses.

"Like the larger economy, we are on the brink, and it will be critically important for faculty members to participate fully in the difficult budget decisions to come," the report says. "They must insist on full access to information, and take a critical look at claims about the need for immediate actions that will result in further demands on already strained human resources. Decisions about salaries, reductions in faculty positions and academic programs, and changes in the employment conditions of contingent faculty will affect the quality of the education we can offer for years to come, and we must ensure that the choices we make are good ones."

Even with the various caveats attached this year's figures, the overall data and the campus-by-campus statistics (available today on the AAUP's Web site) show a further extension of trends in which the salary gaps within the professoriate grow. This year, salary levels for full professors saw larger raises (an average of 3.8 percent) than did associate and assistant professors (both 3.6 percent) than did instructors (3.3 percent).

(It may seem odd that those figures add up to a situation in which the national average increase is 3.4 percent, especially since the AAUP survey counts far more professors than instructors, and this has led some experts to question the AAUP for not using weighting in its calculations, but the association has stuck with its approach. It should be noted that the questions only concern the national averages across institutions, and not the data for individual ranks or institutions.)

More evidence of the have/have-not reality of higher education is found in the totals for institutions. At 13 institutions (and these aren't institutions announcing furloughs, although many have frozen salaries for next year), the average for a full professor's salary is more than $160,000 and the top average is approaching $200,000. Meanwhile, there are 12 institutions where the average salary for a full professor

26


doesn't top $50,000, and 19 (including 6 of the previous 12) where the average salary for an assistant professor doesn't top $40,000.

Generally, private, non-church-related institutions saw the largest increases this year, with an average salary increase of 4.0 percent across institution types and faculty ranks. That compares to 3.1 percent for publics and 3.9 percent for church-related institutions. The gap is particularly notable at doctoral institutions, where the independent private universities saw an increase of 4.6 percent, compared to 2.8 percent for publics and 4.0 for church related institutions -- across sectors and ranks.

Here are the salary averages for institutions in various categories, broken down by faculty rank.

Average Salary for Full-Time Faculty Members, by Category, Affiliation and Rank, 2008-9

Category Public Private, Independent Church-Related

Doctoral institution

--Full professor $115,509 $151,403 $129,615

--Associate professor $79,986 $95,948 $87,262

--Assistant professor $68,048 $82,295 $72,872

--Instructor $45,491 $56,931 $59,483

--Lecturer $51,827 $62,799 $52,478

Master's institution

--Full professor $88,357 $99,555 $88,036



--Instructor $43,183 $48,781 $46,840

--Lecturer $49,159 $54,208 $49,798

Baccalaureate college

--Full professor $84,488 $98,808 $75,112



--Instructor $43,970 $48,247 $43,342

--Lecturer--Lecturer $49,708 $58,014 $42,349

27


Community college

--Full professor $74,933 n/a n/a

--Associate professor $60,737 n/a n/a

--Assistant professor $53,427 n/a n/a

--Instructor $46,063 n/a n/a

--Lecturer $50,415 n/a n/a

Institutional Rankings

The AAUP study may be best known for its averages by institutions, which allow faculty members and administrators to compare averages to peer institutions or the institutions they want to emulate. There are numerous issues related to such comparisons that aren't reflected in the data, such as the wide variation in cost of livi ng within the United States. But such issues have never detracted from the popularity of comparing institutional averages.

The top salaries this year, as in all recent years, are at private research universities, with Harvard University leading at $192,600. There is a good chance, however, that Harvard may actually be second. Rockefeller University, which last year had an average of $191,200 -- more than $6,000 above Harvard's average last year -- did not participate in the survey this year.

Top 10 Universities in Salaries for Full-Time Full Professors

University Average Salary

1. Harvard University $192,600

2. Stanford University $181,900

3. Princeton University $180,300

4. University of Chicago $179,500

5. Columbia University $175,200

6. Yale University $174,700

7. California Institute of Technology $172,500

8. New York University $170,700

9. University of Pennsylvania $169,400

10. Yeshiva University $168,300

The highest average salary at a public university the year -- University of California at Los Angeles -- is $48,100 less than the figure for Harvard. This year's top 10 list for public universities is considerably

28


different from last year's, but doesn't necessarily mean that there was significant movement. The University of California System, which is well represented on this year's list (and has been historically) did not participate last year.

Top 10 Public Universities in Salaries for Full-Time Full Professors


1. University of California at Los Angeles $144,500

2. University of California at Berkeley $143,500

3. University of North Carolina at Chapel Hill $142,700

4. University of Michigan at Ann Arbor $142,100

5. (tie) University of Maryland at Baltimore $141,200

5. (tie) New Jersey Institute of Technology $141,200

7. Georgia Institute of Technology $139,800

8. Rutgers University at Newark $139,000

9. Rutgers University at New Brunswick $137,500

10. Rutgers University at Camden $136,000

The top spot among liberal arts colleges illustrates that even institutions that have made faculty pay a priority are in retrenchment mode this year. Wellesley College leads in this category (as it did last year), but just last week announced the latest budget cuts in response to a decline in endowment value. Shifts at the college will include a salary freeze for faculty members and 44 layoffs of non-faculty positions.

Top 10 Liberal Arts Colleges in Salaries for Full-Time Full Professors

College Average Salary

1. Wellesley College $145,500

2. Barnard College $135,700

3. Pomona College $135,300

4. Amherst College $135,200

5. Williams College $132,700

6. Claremont McKenna College $131,100

7. Harvey Mudd College $130,800

29


8. Wesleyan University $130,300

9. (tie) Smith College $129,600

9. (tie) Swarthmore College $129,600

Many community colleges do not participate in the AAUP survey, but among those that do, the City University of New York and other institutions in the New York area top the list from year to year. Westchester Community College keeps its top rank, but three CUNY community colleges join it in having average salaries for full professors that exceed $100,000.

Community Colleges Where Average Salary for Full Professors Is More Than $90,000

Community College Average Salary

1. Westchester Community College $109,000

2. Hostos Community College $105,900

3. Queensborough Community College $103,800

4. LaGuardia Community College $101,500

5. Borough of Manhattan Community College $99,100

6. Kingsborough Community College $97,900

7. Miami University Hamilton $97,300

8.(tie) Bronx Community College $96,700

8. (tie) Union County College $96,700

For assistant professor average salaries, CalTech continues to lead at $105,500. Last year, CalTech was the only college in the survey where the average salary for assistant professors was in six figures. This year there are two more: Harvard ($101,400) and Stanford (100,800).

California institutions hold the top two spots on associate professor average as well.

Top 10 Institutions in Salaries for Associate Professors


1. Stanford University $128,000

2. California Institute of Technology $126,200

3. Princeton University $114,300

4. University of Pennsylvania $114,100

30


5. Babson College $113,300

6. Thomas M. Cooley Law School $112,400

7. Harvard University $112,300

8. Columbia University $112,200

9. Massachusetts Institute of Technology $110,300

10. Cornell University (endowed units) $109,800

The AAUP study also draws attention to the low salaries paid to some full-time professors. Many of the institutions on the lists that follow are in rural areas and/or at religious institutions.

Colleges Where Average Salary of Full-Time Assistant Professor Is $40,000 or Less


1. Tabor College $32,100

2. University of the Southwest (New Mexico) $34,500

3. Bethany College (Kansas) $35,600

4. Northland College $36,400

5. Warner Pacific University $37,000

6. Kentucky Christian University $37,200

7. Alderson-Broaddus College $37,500

8. Iowa Lakes Community College $37,800

9. Union College (Kentucky) $39,000

10. Taylor University at Fort Wayne $39,200

11. Bethany College (West Virginia) $39,300

12. (tie) Rocky Mountain College of Art and Design

$39,500

12 (tie) Central Methodist University $39,500

14. Tiffin University $39,600

15. (tie) University of New Mexico at Valencia $39,700

31


15. (tie) Marshall Community and Technical College

$39,700

15. (tie) Ohio Valley University $39,700

18. (tie) Missouri Baptist University $40,000

18 (tie) Pikeville College $40,000

College Where Average Salary for Full-Time Full Professors Is $50,000 or Less


1. Tabor College $40,800

2. Union College (Kentucky) $42,100

3. Tennessee Wesleyan College $43,400

4. Walla Walla University $44,900

5. University of the Southwest (New Mexico) $45,900

6. Kentucky Christian University $46,200

7. Alderson-Broaddus College $46,700

8. Faith Baptist Bible College and Seminary (Iowa)

$48,000

9. Mineral Area Community College $49,500

10. St. Andrew's Presbyterian College $49,600

11. Ohio Valley University $49,700

12. New Mexico State University at Alamogordo $49,900

John Curtis, AAUPs director of research and public policy, said that it was unprecedented for the AAUP survey to involve so many states and institutions where budgets have changed significantly since data were submitted. He said that the AAUP was considering steps it can take -- such as an updated survey or new data for this year in next year's survey -- so that long term patterns are accurately reflected after all of the cuts are made.

He stressed that the data released today - while not final -- represent a best case scenario for faculty salaries this year, with the reality being that many are not experiencing real raises of the magnitude reported in the survey. Looking at the furloughs and various cuts being announced, he said, "it does strike me that the whole question of implementing furloughs and recisions is symbolic of the commitment to higher education, of not viewing it as as an investment as we should."

Scott Jaschik

32

The New York Times, April 13, 2009 (Page 1 of 3)

Plan to change student lending sets up a fight

By DAVID M. HERSZENHORN April 13, 2009

WASHINGTON The private student lending industry and its allies in Congress are maneuvering to thwart a plan by President Obama to end a subsidized loan program and redirect billions of dollars in bank profits to scholarships for needy students.

The plan is the main money-saving component of Mr. Obamas education agenda, which includes a sweeping overhaul of financial aid programs. The Congressional Budget Office says replacing subsidized loans made by private banks with direct government lending would save $94 billion over the next decade, money that Mr. Obama would use to expand Pell grants for the poorest students.

But the proposal has ignited one of the most fractious policy fights this year.

Because it would make spending on Pell grants mandatory, limiting Congressional control, powerful appropriators are balking at it. Republicans say the plan is proof that Mr. Obama is trying to vastly expand government. Democrats are divided, with lawmakers from districts where lenders are big employers already drawing battle lines.

At the same time, the private loan industry, which would have collapsed without a government rescue last year, has begun lobbying aggressively to save a program that has generated giant profits with very little risk.

The administration has decided that it wants to capture the profits of federal student loans, said Kevin Bruns, executive director of Americas Student Loan Providers, a trade group that is fighting Mr. Obamas plan.

To press its case, the nations largest student lender, Sallie Mae, has hired two prominent lobbyists, Tony Podesta, whose brother, John, led the Obama transition, and Jamie S. Gorelick, a former deputy attorney general in the Clinton administration.

For lenders, the stakes are huge. Just last week, Sallie Mae reported that despite losing $213 million in 2008, it paid its chief executive more than $4.6 million in cash and stock and its vice chairman more than $13.2 million in cash and stock, including the use of a company plane. The company, which did not receive money under the $700 billion financial system bailout and is not subject to pay restrictions, also disbursed cash bonuses of up to $600,000 to other executives.

Sallie Mae said that executive compensation was lower in 2008 than 2007 and that the stock awards were worthless in the current market.

Critics of the subsidized loan system, called the Federal Family Education Loan Program, say private lenders have collected hefty fees for decades on loans that are risk-free because the government guarantees repayment up to 97 percent. With the government directly or indirectly financing virtually all federal student loans because of the financial crisis, the critics say there is no reason to continue a program that was intended to inject private capital into the education lending system.

Under the subsidized loan program, the government pays lenders like Citigroup, Bank of America and Sallie Mae, with both the subsidy and the maximum interest rate for borrowers set by Congress.

33


Students are steered to the governments direct program or to outside lenders, depending on their schools preference.

Private lenders say they still provide valuable service, marketing, customer relations, billing, default prevention and collection of delinquent loans. The lenders say the budget savings could be achieved without ending their role and are pushing to keep the system in place, including an arrangement approved by Congress last year by which they are paid to originate loans but can resell them to the government.

Martha Holler, a spokeswoman for Sallie Mae, said the company wanted a compromise. To be clear, there are those who are fighting to preserve the historic financing structure for federal student loans, she wrote in an e-mail message following up on a telephone interview. Sallie Mae is not among them. In fact, we support constructive alternatives that would generate a similar level of taxpayer savings to achieve the administrations important goals.

Lenders are also emphasizing the jobs they provide.

Sallie Maes chief executive, Albert L. Lord, held a town-hall-style meeting last week at the companys loan center in Wilkes-Barre, Pa., with two Democrats, Senator Bob Casey and Representative Paul E. Kanjorski, to announce the return of 2,000 jobs that were sent overseas in 2007.

Mr. Lord, in his opening speech, insisted that Mr. Obamas proposal offered new opportunities, but he said he would fight to keep the current system mostly intact.

We can either meet or beat the budget savings that are in the presidents budget with the exact same system that we have got working now with maybe a few tweaks, he said.

But to preserve a profitable role for private lenders and still achieve Mr. Obamas savings seems extremely difficult if not impossible; initial projections put forward by Sallie Mae could reach only 82 percent of the presidents goal over five years.

Last year, to keep education financing from drying up, Congress expanded the governments role, including the repurchase of loans, which Sallie Mae and some other lenders say should be mandatory going forward.

When you add that all up, a very legitimate question to ask is why do we even need private lenders, said Representative Timothy H. Bishop, Democrat of New York and a former provost of Southampton College.

For Mr. Bishop and many other education advocates, Mr. Obamas plan to expand the existing direct loan program used by more than 1,500 schools is obvious and long overdue.

But the administration has a fight on its hands.

The presidents proposal, Representative Allen Boyd, Democrat of Florida, said in a floor speech, could be detrimental to thousands of employees who serve in the current student loan industry throughout this country, 650 of which are located in Panama City, Florida.

In some states, student loans are administered by quasi-governmental agencies that benefit the same as private lenders. To appeal to these states, the administration has proposed $500 million a year for financial literacy programs and other services the agencies provide.

34


Political opposition may be harder to overcome.

Representative Howard P. McKeon of California, the senior Republican on the education committee, said Democrats should not cut out lenders. A government-run, one-size-fits-all program is not the answer, he said.

But some lawmakers have no sympathy for an industry now kept afloat by taxpayers.

If the banks complain that they are getting cut out, said Representative Barney Frank, Democrat of Massachusetts, too bad.

At the Wilkes-Barre event, Mr. Lord of Sallie Mae acknowledged his industrys reliance on the government. I dont see private capital financing student loans, certainly any time soon, he said.

Even as lenders fight the presidents plan, Sallie Mae and others are bidding for work that will remain if it is adopted contracts for loan servicing and other back office operations.

The presidents plan would use the money from direct lending to help increase Pell grants and make them mandatory, with annual increases tied to inflation, providing a much-needed measure of certainty for students. That would limit Congressional control over the grants, an idea appropriators are not keen on, but the White House and Congressional leaders say they are open to negotiation.

Anticipating a ferocious legislative battle, Representative George Miller, Democrat of California and chairman of the education committee, is weighing all options.

Chairman Millers priority is to make our federal student loan programs as reliable, sustainable and efficient as possible for students, families and taxpayers, his spokeswoman, Rachel Racusen, said.

Jonathan D. Glater contributed reporting.

35


Stimulus Spurs Campus Building

Little by little, the American Recovery and Reinvestment Act -- better known as the economic stimulus package -- is having an effect on college campuses. While the biggest ticket items, such as tens of billions in research and state stabilization dollars, are not yet flowing in any meaningful way, colleges have begun to take advantage of separate provisions in the new law designed to make it easier for them to borrow money to finance capital projects.

The University of Minnesota announced Friday that it would become the first college in the country to use the new Build America Bonds, which were created in the stimulus legislation to help state and local governments (and related entities) raise money for building projects by making it significantly cheaper for them to issue taxable bonds.

And several colleges, including the University of West Florida, are poised to take advantage of another provision in the financial recovery law that will make it easier for nonprofit colleges and hospitals to borrow money for capital projects directly from banks, rather than having to go to the financial markets.

In some cases, the two provisions will enable colleges that would otherwise have been unable to build (because the financial markets were constricted or they could not afford the costs of borrowing) to do so. In other cases, as at Minnesota, institutions will save significant money that they can use for other purposes.

"Lowering our borrowing costs, in our case by about $2 million over 20 years, translates into not having to raise tuition as much," says Richard Pfutzenreuter, vice president and chief financial officer at Minnesota.

Minnesota, as one of the country's largest public universities, is not among the colleges that have been most hampered by the credit crisis that have made it more difficult and, in some cases, impossible for government agencies to issue tax-exempt bonds for construction and other capital projects. The university has continued to find buyers for its twice-a-year issuances of tax-exempt bonds, but it has seen its costs of doing so rise significantly.

As Minnesota officials sought to raise about $85 million for a series of capital projects, including a new biosciences building, a residence hall on its Crookston campus, and an athletics renovation at its Duluth campus, they saw an opportunity to save money through the Build America Bonds program. Under the program, which the Internal Revenue Service explains here, the federal government agrees to rebate to state and local entities 35 percent of their interest costs on taxable bonds.

While the interest rate on taxable bonds tends to be higher than those charged on the tax-exempt bonds that universities and other nonprofit entities typically use (because, as the name implies, they don't have to pay tax on the interest they pay), the government program "will make the all-in interest cost [for taxable bonds issued through Build America] lower than under tax-exempt bonds," says Minnesota's Pfutzenreuter.

So next week, the university anticipates becoming the first postsecondary institution to go to the public markets with taxable bonds through the Build America program, with the help of Wachovia Securities and Wells Fargo Brokerage Securities. About $35 million of the university's $86 million offering will be in taxable bonds. The subsidies it will receive from the government on its debt service payments will save it $2 million, Pfutzenreuter says.

A Boon to Building, Through Banks

The other change in the stimulus legislation that is poised to spur campus construction has been a long time coming. Advocates for nonprofit organizations have been pushing for more than 20 years to undo a change made as part of the federal government's 1986 tax reform that barred banks from deducting

36


interest payments or carrying costs on money they borrowed, except for relatively small loans they made to state or other entities that borrowed less than $10 million a year. (For more details, see this earlier article.)

That change took away one avenue for colleges that had historically depended for capital projects on state agencies that borrowed from banks, and their remaining options -- entering the public markets or paying significant more to cover the interest costs of the banks they borrowed from -- grew less feasible with the economic downturn.

The economic recovery measure, though, changed federal tax law to allow banks to deduct the interest on any loans as long as the ultimate recipient of the money -- an individual college, for instance -- does not borrow more than $30 million in a year.

The University of West Florida is among the first to take advantage of the change. To finance the construction of a much-needed, 250-student residence hall, the university, working through the local Escambia County Housing Authority, has qualified for a $15 million loan from BB&T that would have been impossible three months ago. Not only did the amount exceed the $10 million cap on the size of loans under the old tax law, but the university would have been required to pay as much as $100,000 to the county government, to cover the county's perceived costs of agreeing to forgo its own ability to borrow from banks, says Paula G. Drummond, a lawyer for the Escambia housing authority.

Financing the project through a bank-qualified loan will give the university a better interest rate than it would have received through the public markets, had it been able to interest investors in the project, and will save it the issuance and insurance costs, Drummond says.

"This whole thing is just made possible by the stimulus."

Doug Lederman

37

The Chronicle of Higher Education, April 14, 2009 (Page 1 of 2)

Locked-in tuition is a win for families but a tough sell for colleges

By BECKIE SUPIANO Tuesday, April 14, 2009

Tuition just about always moves in the same direction: up. So wouldn't it be great if students could lock in tuition at their college and know they will pay the same amount for four years?

It seems like a no-brainer, especially now. But some colleges have tried the strategy only to find it hard to convince families that it's a good idea.

That hasn't stopped colleges from trying. The University of Texas at Dallas began its Guaranteed Tuition Rate Plan in the fall of 2007, as a way to "provide simplicity, predictability, and clarity for our students," says Curt Eley, the university's vice president for enrollment management.

Under the plan, incoming students are promised that their tuition and mandatory fees will remain the same for four years from the time they begin their studies. "It takes what I call the inflation risk out of tuition and fees for each individual student," Mr. Eley says. The university even offers the guarantee to students enrolling in Texas community colleges who plan to transfer. Those students sign a document that binds the university to charge them the university's current tuition rate but doesn't obligate them to attend.

The Dallas campus's program began before the economy tanked, but it could be even better for families now. Many households don't expect their incomes to go up in the next year, and it would be especially helpful if their college expenses remained flat.

Strategy Reliant on Growth

Under the plan, the college gets fewer tuition dollars from each continuing student. But Mr. Eley says the university has been able to finance it by substantially increasing its student body through both recruitment and retention. That growth is providing a cushion while the university adjusts to the new tuition model. It would be much harder to start such a program at a college that had already reached full capacity, he says.

Letting students lock in their tuition isn't a new idea, but as the recession pressures families and colleges alike, pricing strategies are particularly important, and many colleges will be trying to think creatively. As colleges contemplate pricing, they must keep in mind not only the actual cost to families but also the perceived cost.

On its face, Texas at Dallas's guarantee is an obvious boon for students and their families. Not only does the program take the guesswork out of what next year's tuition will be, but it also provides savings for students who stay long enough to complete their degree.

Letting students lock in tuition is a great idea in theory, says Kathy Kurz, vice president of the higher-education consulting company Scannell & Kurz. But in reality, it is not so simple for colleges to market.

For the last few years, tuition has increased by an average of 4.5 to 6.5 percent a year, depending on the type of institution. But if a college has a tuition guarantee, it won't have those year-to-year increases. To

38

The Chronicle of Higher Education, April 14, 2009 (Page 2 of 2)

compensate, colleges must raise tuition significantly from one year's freshman class to the next. An incoming freshman at a college with fixed tuition may find herself paying 12 percent more than freshmen did the year before.

That, Ms. Kurz says, creates a marketing problem. Though families may be set up to save money over the long run with guaranteed tuition, they often don't look past the first-year price tagwhich is likely to be higher than that of similar institutions. "The biggest concern is, at least initially, families pay more," Ms. Kurz says. Paying more that first yeareven if it means future savingsstrikes many families as too risky, she says.

That is especially true this year, as college after college has announced its lowest tuition increase in years. "Colleges, by and large, are having a much smaller rate of tuition increase than any time in the last five or six years," says Robert A. Sevier, senior vice president for strategy at Stamats, a higher-education-marketing company. "It's not the time for a nine-, 10-, 11- or 12-percent increase, which a lot of four-year fixed rates need."

A Retention Tool

For that reason, Texas at Dallas educates families about its program throughout the admissions process, helping them think through the cost of a whole college education rather than focusing on that first year, Mr. Eley says. "I would make the argument to a family, it's great that college X is increasing tuition by 2.5 percent and not 5 percent, but we're raising it 0 percent" for continuing students. "College X isn't making a contractual promise. There's no reason they can't turn around and raise tuition 10 percent next year."

And, Mr. Eley says, the program is primarily designed to encourage retention, making it easier for students to plan for all four years and encouraging them to graduate on time.

Even when families understand the potential benefits, they may be wary of locking in tuition. What if the student transfers or drops out? Officials at Oklahoma City University have noticed that reluctance.

The university also began a tuition guarantee recently, though it operates differently from Dallas's. At Oklahoma City, the program is optional, and those students who enroll in it are charged several hundred dollars a semester more in tuition their first year. Officials there say only 14 percent of stude

041709.pdf

Documents

Transcript of 041709.pdf